ECONOMICS QUESTION PAPER IV

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TIME: - 3 hours                                                                       THIRD PRELIMINARY EXAMINATION BISMILLAH                                                             MARKS: - 100
3.00pm to 6.00pm
Avoid Cancelation, Diagram is Necessary, Try to attend all questions, BISMILLAH    

Q.1 (A) Complete the sentences by choosing correct alternative given below. BISMILLAH                                                                    5marks
             (Min 1 SIDE OF THE PAGE IS NEEDED)
1.        Central banks lends loans to ___________ (businessmen, farmers, consumers, commercial banks)
2.        Stock refers to the ____________ (real concept, static concept, flow concept, none of these)
3.        The law of demand is not applicable for ___________. (music, reading, money, indivisible goods)
4.        Electricity has ____________ (competitive demand, composite demand, complimentary demand, joint demand)
5.        The abnormal demand curve slopes _____________ (upward, downward, vertical, remains the same)

        (B) State whether the following statements are true or false.  BISMILLAH                                                                                          5marks
             (Min 1 SIDE OF THE PAGE IS NEEDED)
1.        Refrigerator in restaurant is capital goods.
2.        Government budget gives us the complete financial information of the country
3.        Reservation price of perishable goods is generally high
4.        Price is the only factor that determines demand for a commodity.
5.        Free entry is an essential but not a sufficient condition of perfect competition.

         (C) Choose the correct answer in each from the following four alternatives BISMILLAH                                                              5marks
             (Min 1 SIDE OF THE PAGE IS NEEDED)
1.        in case of perfectly elastic demand, the demand curve is __________
·         Parallel to Y axis
·         Parallel to X axis
·         Downward sloping
·         Upward Sloping

2.        Discriminating monopoly implies that the monopolist charges __________
·         Different prices
·         Single price
·         No price
·         Uncertain price

3.        During depression, the Central Bank adopts the _____________
·         near money policy
·         dear money policy
·         Cheap money policy.
·         No money policy

4         National Income data is not completely reliable _____________
·         Due to statistical and conceptual difficulties
·         Due to illiteracy in the country
·         N.I data is too large.
·         It takes a long time in its calculation

5.   Monopoly of Note-issue of the Central Bank is its:
§  Traditional function
§  Development Function
§  Modern Function
§  Secondary function

          (D) Match the two columns given below: BISMILLAH                                                                                                                                 5marks
             (Min 1 SIDE OF THE PAGE IS NEEDED)

Group A
Group B
1.        Increase in Demand
2.        Unitary elastic demand
3.        Aggregate Supply
4.        Heavy loss
5.        Banker’s Bank
1.        Ed = 1
2.        Reserve Bank of India
3.        Fall in consumption
4.        Bank of India
5.        Rise in Income
6.        Natural resources
7.        Central Bank of India
8.        Saving



Q. 2 (A) Define and explain the following concept.   BISMILLAH           (Attempt any 4)                                                                                        8 marks
      (Separate page for separate answer)
1.       GDP (4 points needed) Min 1 SIDE OF THE PAGE FOR ONE QUESTONS
2.       Labour   (4 points needed) Min 1 SIDE OF THE PAGE FOR ONE QUESTONS
3.       Budget(4 points needed) Min 1 SIDE OF THE PAGE FOR ONE QUESTONS
4.       Aggregate Demand (Diagram needed)  Min 1 SIDE OF THE PAGE FOR ONE QUESTONS
5.       Stale Cheque(4 points needed) Min 1 SIDE OF THE PAGE FOR ONE QUESTONS
6.       Average propensity to consume(4 points needed) Min 1 SIDE OF THE PAGE FOR ONE QUESTONS
7.       Open Market Operation (4 points needed) Min 1 SIDE OF THE PAGE FOR ONE QUESTONS
8.        Fixed Capital (Diagram needed) (4 points needed) Min 1 SIDE OF THE PAGE FOR ONE QUESTONS

  (B) Rewrite the following statements as True of False. Give Reasons. (Any 4)  BISMILLAH                                                                   8 marks
       (Separate page for separate answer)
1.        Pen and ink have negative cross elasticity of demand (4 points needed)
2.        Autonomous consumption can be zero. (4 points needed)
3.        Utility is a subjective concept. (4 points needed)
4.        Commercial bank regulates the issue of currency. (4 points needed)
5.        Supply curve slopes upward from left to right. (4 points needed) (Diagram needed)
6.        Microeconomics helps to understanding of economic problem o a nation. (4 points needed)
7.        Sunk capital has several purposes (uses). (4 points needed)
8.        Whenever income increases, saving also increases. (4 points needed) (Schedule needed)

 Q. 3 (A) Distinguish between (Any Four) of the following     BISMILLAH                                                                                                          8 marks
               (Separate page for separate answer)
1.        Variation in demand V/S Changes in demand (4 points needed)
2.        Labour V/S Capital (4 points needed)
3.        Income method V/S expenditure Method (4 points needed) (Diagram needed)
4.        Illegal income/S transfer income(4 points needed)
5.        Perfect competition V/S Monopoly(4 points needed)
6.        Saving Account V/S Fixed Deposit Account(4 points needed)
7.        Extension in demand V/S Increase in Demand(4 points needed) (Diagram needed)
8.        Income Elasticity of demand V/S Cross Elasticity of demand(4 points needed) (Diagram needed)

         (B) Give reasons or explain the following in brief. (Any 4)     BISMILLAH                                                                                                 8 marks
               (Separate page for separate answer)
1.        A cheque is optional money. (4 points needed)
2.        Geffen’s goods are an exception to the law of demand(4 points needed)
3.        Reading books and stamp collection is not a real exception to the law of DMU. (4 points needed)
4.        In Deficit budget Expenditure is more than Income. (4 points needed)
5.        When Consumption is equal to income, saving is zero. (schedule is needed) (4 points needed)
6.        Reservation price is low in case of perishable commodity. (4 points needed)
7.        Value of only final goods and services are included in Calculating National Income(4 points needed)
8.        Why popularity of the macro economics increased? (4 points needed)

5 FULL PAGES MUST BE COMPLETED UPTO HERE. BISMILLAH    

Q. 4. (A) Answer the following questions in one or two paras (any 2) BISMILLAH                                                                                          8 marks
              (Separate page for separate answer)
1.        Components of Budget.(Meaning, Definition and 6 points)
2.        Features of  Micro economics (Meaning, Definition and 6 points)
3.        Explain the Backward Bending Labour Curve? (Meaning, Definition and 6 points) (Diagram needed)
4.        Explain the Features of Land? (Meaning, Definition and 6 points)
                                                                                                                                                                                                        8 marks
(B) Write Short notes on the following: (any two) BISMILLAH    
     (Separate page for separate answer)
1.        Secondary function of commercial bank (Meaning, Definition and 6 points)
2.        Product method of measuring National Income (Meaning, Definition and 6 points)
3.        Consumption Function (Meaning, Definition and 6 points) (Diagram needed)
4.        Importance of Elasticity of demand (Meaning, Definition and 6 points)

Q. 5 Do you agree or disagree with the following statements. Give Reasons. (Any Two)    BISMILLAH                                                         16 marks
        (Separate page for separate answer)
1.        Whenever Saving Increases Consumption also increases. (Reason + 7 or 8 points Min 11/2 PAGE) (write saving function)
2.        There are no difficulties involved in the measurement of National Income? (Reason + 7 or 8 points Min 11/2 PAGE)
3.        Accepting Deposit is not only the primary function of commercial bank (Reason + 7 or 8 points Min 11/2 PAGE)
        
Q. 6 Answer the following (any two)        Min 21/2 SIDE OF THE PAGE FOR ONE QUESTONS    BISMILLAH                                                                                    16 marks
        (Separate page for separate answer)
1.        Define and Explain the Functions of Central Bank? (Meaning, Definition and 8 points)
2.        What are the determinants of Individual Demand? (Meaning, Definition and 8 points)
3.        Explain the law of Diminishing Marginal Utility? And it’s Assumption? (Meaning, Definition and 8 points) (Diagram needed)
Minimum 38 side of the page must be completed